Bulls are sticking with Chicago Bridge
David Russell | [email protected]
optionMONSTER's Heat Seeker monitoring program detected the purchase of about 10,000 July 60 calls for $2.30 and the sale of an equal number of April 55 calls for $2.90. Volume was below open interest in the 55s but above it in the 60s, indicating that a profitable long position was closed and rolled to the higher strike.
The investor collected a credit of $0.60 in the process and will stay in the bullish trade for another three months. (See our Education section for more on how options can be used to manage trades.)
CBI is up 1.33 percent to $56.61 this afternoon and has appreciated by more than 50 percent since mid-November. The engineering and construction company beat expectations in its last earnings report on Feb. 27, saying that its backlog has expanded.
Total option volume in the stock is 11 times greater than average so far today, according to the Heat Seeker. Calls outnumber puts by a bullish 32-to-1 ratio.